Context (IE): India’s inflation rate in November 2024 came in at 5.5 per cent. What is Inflation? Inflation is the rise in the general level of prices of goods and services in an economy over a period of time. Headline Inflation: Inflation is due to all types of commodities in the economy. Core Inflation: Inflation excluding food and fuel items. Inflation target in India Under the RBI Act, the GoI, in consultation with the RBI, determines the inflation target in terms of the Consumer Price ... Explaining with diagrams - different types of inflation including - demand-pull, cost-push, wage-inflation. Also, creeping, running and hyperinflation. Inflation, representing a general rise in the price level of goods and services over time, manifests in various forms depending on its underlying causes, intensity, and characteristics. Understanding these different types provides crucial insights for policymakers, economists, and individuals alike in navigating economic environments effectively. Understanding the types of inflation, their meaning, causes and consequences is essential in protecting against the adverse effects of inflation on the economy.
